The recent condition of the resources and finance of Korea can be discovered in the most trustworthy way possible under existing circumstances, only by a critical study of the detailed reports to which reference has already been made in this chapter. The following more important items are taken from the Report of March, 1907. In this report the total estimated revenue for 1907 is given at 13,189,336 _yen_, which is an increase of 5,704,592 _yen_ over that of 1906. Of this total, however, 3,624,233 _yen_ is extraordinary. The total estimated expenditure for the same year is 13,963,035 _yen_, which is in excess of that of the year of 1906, by the sum of 5,995,647 _yen_. The increase in expenditure is partly to provide for increase in salaries—a necessary measure if the amount of “squeezes” is to be reduced and a sufficient number of competent and honest officials secured; but more largely for the reform of the educational organization, for the founding and support of technical schools, for the extension of engineering works, the building of roads, of law courts, and other public buildings, the founding of hospitals; and for the extension of the police and judicial systems. As to individual items it is noticeable that the military estimates have been reduced from 2,426,087 _yen_, in 1905, when they were 26 per cent. of the total expenditure, to 1,522,209 _yen_, or 11 per cent. of the total expenditure for the year 1907. This sum has now further been much reduced by the disbanding of the Korean army, with the exception of a body of palace guards, as a consequence of the new Convention of July, 1907.